Kathmandu [Nepal], December 7 (ANI): Nepal’s anti-graft body, the Commission for Investigation of Abuse of Authority (CIAA), has filed a corruption case against 55 defendants, including the Chinese firm China CAMC Engineering, over the construction of Pokhara International Airport. The case was lodged in the Special Court, with CIAA citing irregularities, inflated costs, and misconduct in the project.
According to the CIAA, the airport’s construction, initially approved at USD 145 million, saw costs artificially increased to USD 286.526 million. The anti-graft body alleged that the Chinese contractor acted with bad intentions, manipulating procurement processes to gain illegal benefits. China CAMC Engineering, the construction arm of state-owned conglomerate Sinomach, imported materials and machinery from China, and the airport relied heavily on Chinese security and industrial technology.
A subpanel of Nepal’s House of Representatives Public Accounts Committee (PAC) had previously highlighted irregularities, including unsuitable soil at the site, improper runway elevation, and payments made to the Chinese contractor without work being completed. Additionally, the Civil Aviation Authority of Nepal (CAAN) reportedly spent USD 742,659 to install AC units despite the contractor’s contractual responsibility to do so. Other discrepancies included payments of over USD 4.4 million for incomplete work and tax exemptions worth NPR 2.2 billion granted to the contractor.
CIAA’s filing names five former ministers—Ram Sharan Mahat, (late) Post Bahadur Bogati, Ram Kumar Shrestha, Bhim Acharya, and Deepak Amatya—ten former secretaries, including Pradeep Adhikari, the former Director General of CAAN, and other officials as defendants. The anti-graft body has sought damages of approximately NPR 8.36 billion.
The Pokhara International Airport, opened earlier this year, has seen limited international traffic, primarily chartered flights from China. Dubbed a “White Elephant” during its early construction, the airport has been criticized for its financial and operational inefficiencies. Investigations revealed that Chinese contractors consistently prioritized profits, bypassing Nepali oversight, while Nepal incurred significant debt to Chinese creditors.
Originally, the project was formalized under a 20-year agreement between Nepal and China in 2016, with partial funding as an interest-free loan and the remainder from China’s Export-Import Bank at 2% interest. The lack of qualified personnel and insufficient consultant budgets compromised construction standards, including soil density tests, drainage design, and airport safety measures.
Further complications arose when China IPPR International Engineering, commissioned to oversee the project, became a subsidiary of CAMC, creating conflicts of interest. Allegations also emerged of falsified employee credentials.
As Pokhara airport struggles to attract international flights, Nepal has reportedly requested China to convert the loan into a grant, but no relief has been granted. The airport’s challenges underscore the risks of adopting China’s infrastructure development model, raising concerns about financial sustainability, transparency, and regional geopolitical dynamics. (ANI)
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